Ocelot Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%. Its effective tax rate is 40%. What is the division's Return on Investment (ROI)?
A)166.67%
B)27.00%
C)60.00%
D)105.88%

Question

Ocelot Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%. Its effective tax rate is 40%.  What is the division's Return on Investment (ROI)?
A)166.67% 
B)27.00% 
C)60.00% 
D)105.88%

Quizplus · Accepted Answer

The Answer of Ocelot Corporation had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%. Its effective tax rate is 40%.  What is the division's Return on Investment (ROI)?
A)166.67% 
B)27.00% 
C)60.00% 
D)105.88%

Ocelot Corporation Had the Following Results Last Year (In Thousands)